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▲ Zcash (ZEC), Ethereum (ETH), XRP (XRP)/AI-generated image
Zcash (ZEC) has surged by over 1,200% in a year, re-emerging as a key asset to complement the potential risks inherent in Bitcoin's (BTC) transparent ledger structure.
The cryptocurrency-focused YouTube channel Coin Bureau reported in a video uploaded on May 11 (local time) that the market sentiment has reversed following the revelation that global digital asset fund Multicoin Capital has been accumulating Zcash since February. Within 72 hours of the news of accumulation, Zcash's price surpassed $600 for the first time in 10 years, and a short squeeze of approximately $62 million occurred (buying pressure resulting from the liquidation or covering of short positions). Zcash has risen by 56% in the last month, 144% over 90 days, and surged by 1,255% over one year, significantly outperforming Bitcoin's return, which fell by 22% during the same period.
Tushar Jain, co-founder of Multicoin Capital, pointed out at Consensus Miami that while Bitcoin is censorship-resistant, its transparent ledger structure makes it vulnerable to state seizure or asset taxation. Arthur Hayes, who leads the Maelstrom investment fund, also holds Zcash as his second-largest position after Bitcoin and predicts it will capture 10% to 20% of Bitcoin's market capitalization in the long term, rising to $8,000 to $10,000 per coin. In fact, the supply of Zcash held in anonymous addresses has exceeded an all-time high of 30%, which is interpreted as structural conviction beyond mere speculative demand.
Changes in institutional frameworks are also catalyzing Zcash's resurgence. Grayscale has submitted S3 documents to convert its existing Zcash Trust into a Zcash spot ETF traded on NYSE ARCA, and the SEC has also concluded its investigation into the Zcash Foundation without further action. Furthermore, as the stablecoin regulation law GENIUS grants issuers the right to freeze assets and the IRS strengthens virtual asset transaction reporting, the need for portfolio allocation to mathematically unmonitorable privacy assets has increased. Robinhood also listed Zcash, allowing trading for over 27 million accounts.
The threat of quantum computers, a future technology, also highlights Zcash's technological superiority. Amid widespread fear that quantum computers could decrypt Bitcoin's elliptic curve cryptography around 2030, following Google's announcement of the Willow chip, Zcash plans to introduce post-quantum privacy through its Techon upgrade by the end of 2026. Josh Swart, a key Zcash figure, explained that Zcash's design structure has the flexibility to safely protect assets even in the era of quantum computing.
However, challenges remain, such as the risk of delisting anonymity coins from European exchanges by July 2027 due to MiCA and AML regulations, and the execution capability of the Zcash Open Development Lab, which was established after the resignation of the original development team. Although some analyses suggest that the current RSI of 79.7 indicates a technically overbought state, it is an undeniable trend that smart money has begun to reflect the value of privacy in prices. This Zcash rally is not just a one-off rebound but foreshadows a paradigm shift in the digital asset ecosystem.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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